Ethereum
Here’s how Ethereum (ETH) will start to gain strength
Arman Shirinian
While the market is in a negative state, many assets could be targeting high levels
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XRP showed investors that it is not currently the weakest asset on the market. The asset is currently in consolidation mode at around $0.48, but with the potential formation of a higher low, XRP could enter an uptrend.
On the daily chart, we can see that XRP is consolidating slightly below the important resistance levels, namely the 50 EMA, the 100 EMA and the 200 EMA. Before taking a big step forward, this consolidation phase usually means the asset is getting stronger. With room for upside, the RSI (Relative Strength Index) at 42 indicates that XRP is neither overbought nor oversold.
The formation of a higher low is one of the crucial indicators to watch out for. This would suggest a possible shift in market sentiment from bearish to bullish if XRP could keep this low higher. Because it indicates that buyers are entering the market at higher prices and preventing the asset from falling to previous lows, this trend is often interpreted as an indication of an impending uptrend.
The possibility of an uptrend is also supported by volume analysis. Even though trading volume has remained relatively constant, any increase in volume during this consolidation phase could indicate significant interest from buyers. A significant signal of a bull market would be a breakout above current resistance levels accompanied by high volume.
Shiba Inu needs help
Shiba Inu the current state is truly disastrous. The same coin is in its worst state since the start of the year, and some indicators are showing values we haven’t seen since 2023. Will things change, or is this the end of SHIB?
The Shiba Inu has fallen sharply to the point where it could be significantly overvalued. SHIB value has fallen below several important support levels, such as 50 EMA and 100 EMA, and it is currently hovering dangerously near 200 EMA, according to the daily chart study.
Due to the incessant downward trend spiral, investor confidence was shaken and SHIB entered the oversold zone. With the RSI (Relative Strength Index) at 26.99 right now, it is obvious that SHIB is oversold. The RSI was at this low point over a year and a half ago. An RSI below 30 is generally considered a strong buy signal, indicating that the asset is cheap and may be about to see a rise in price.
However, for a significant recovery to take place, technical indicators and general market sentiment must coincide. Additionally, trading volume has declined, suggesting that there is not much buying interest at these prices. This further intensifies the negative outlook for SHIB. Due to the speculative nature of meme coins and their recent performance, investors are hesitant to jump on the bandwagon.
Ethereum aims for recovery
Ethereum reached $3,500 after the latest correction and consolidation around it. Fortunately, the breakthrough here is more than a possibility, as the second-largest cryptocurrency remains compounded while the rest falls.
Considering the volatility of the market as a whole, Ethereum’s ability to maintain its value around $3,500 is impressive. Ethereum demonstrates strong buying interest around the 50 EMA and 100 EMA, as well as other important support levels, by consolidating above them on the daily chart.
With a solid foundation in place, ETH can rise without being immediately pushed to sell due to its neutral position. Ethereum may indicate an uptrend and attract additional buyers if it manages to maintain its current momentum and break above the $3,500 resistance level.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.